Dear Readers:Happy New Year. As we come to the close of 2017, the Civil Division of the U.S. Department of Justice ("DOJ") recently issued its 2017 annual statistics for False Claims Act ("FCA") cases filed and settled in fiscal year…

Court Refuses to Permit Government to File Statement of Interest or Amicus in Non-Intervened False Claims Act Case

Counsel who regularly defend False Claims Act (FCA) cases often encounter “statements of interest” filed by the government in non-intervened FCA cases. Though not a party to the case since it has declined to intervene, the…

Qui Tam 101

According to a Department of Justice announcement in December 2016, the Government has recovered over $4.7 billion from False Claims Act cases in fiscal year 2016. The total amount recovered under the False Claims Act since 1987 is…

Recently, the Department of Justice announced that it was increasing the civil monetary penalties for penalties assessed after February 3, 2017 for violations occurring after November 2, 2015. Pursuant to the 2015 budget bill which requires…

Attorney General Maura Healey announced that South Bay Mental Health Center, Inc. (SBMHC) has agreed to pay $4 million based on allegations that it fraudulently billed the state’s Medicaid Program, known as MassHealth, for mental health…

Tampa’s Largest Ambulance Providers Agree To Pay $5.5 Million To Resolve Whistleblower Case

On January 30, United States Attorney Maria Chapa Lopez announced that AmeriCare Ambulance Service, Inc. and its sister company, AmeriCare ALS, Inc. agreed to pay approximately $5.5 million to resolve allegations that they defrauded Medicare…

Whistleblower Case Yields $10.5M Against Importer for Furniture Featured by Kim Kardashian

A Virginia importer of Chinese mirrored furniture that became popular when Kim Kardashian selected it for her mansion bedroom has agreed to pay $10.5 million to settle claims it improperly evaded federal anti-dumping duties, the…

On Tuesday, January 30, 2018, United States Attorney for the Middle District of Florida Maria Chapa Lopez announced the settlement of a false claims act case against AmeriCare Ambulance Service, Inc. and its sister company, AmeriCare ALS,…

DaVita Rx LLC, a nationwide pharmacy specialized in serving patients with severe kidney disease has agreed to resolve allegations that the company defrauded the Government through improper overbilling of the Medicare and Medicaid healthcare…

U.S. State Department Contractor to Resolve Allegations of Improper Vetting with $5 Million Settlement

On September 14, 2017, Pacific Architects & Engineers Incorporated (PAE) settled a whistleblower lawsuit alleging the company did not follow proper vetting procedures for its personnel that performed and billed work to the U.S. State…

On January 23, the Department of Justice announced that two California urologists agreed to pay $1 million to settle allegations that the pair violated the self-referral (Stark) law’s prohibitions. According to DOJ’s press…

California company settles False Claims Act allegations for $7.62 million

On January 23, the Department of Justice announced that Vista, California-based DJO Global, Inc., had agreed to pay $7.62 million to settle allegations that the company submitted claims for medically unnecessary medical equipment to TRICARE,…

On January 19, the Department of Justice announced that San Diego-based Scripps Health had agreed to pay $1.5 million to settle a whistleblower’s allegations that the health care company submitted claims for physical therapy services…

In January 2018, the California Division of Workers’ Compensation (DWC) suspended 18 medical providers. These providers, many of whom are physicians, can no longer work in the state’s workers’ compensation system due to the…

Couple Indicted for Using Active Duty Military Members in California to Defraud TRICARE

Jimmy and Ashley Collins, a married couple from Tennessee, have been charged with operating a health care fraud scheme that unlawfully caused TRICARE to reimburse more than $65 million in funds. TRICARE is the federal health care program for…

Two Urologists Settle False Claims Act Allegations for More Than $1 Million

Two California urologists, Dr. Aytac Apaydin and Dr. Stephen Worsham, have agreed to pay $1.085 million based on allegations of violating the False Claim Act, the Anti-Kickback Statute, and Stark Law, which prohibits physician self-referral,…

Our colleague Laura A. Stutz at Epstein Becker Green has a post on the Health Employment and Labor blog that will be of interest to our readers in the financial services industry: “New York City Council Passes Bills Establishing…

As 2017 comes to a close, recent headlines have underscored the importance of compliance and training. In this Take 5, we review major workforce management issues in 2017, and their impact, and offer critical actions that employers should…

Whistleblower Lawyer News

OIG Report: chiropractor fraud costing Medicare of hundreds of millions of dollars per year

A report just issued by the U.S. Department of Health and Human Services Office of Inspector General reveals that the Government overpaid chiropractors for their services an average of $257 million to $304 million per year over a 6 year…

Three major banks, Deutsche Bank, UBS and HSBC have agreed to pay $46.6 million to settle allegations of schemes to manipulate precious metals futures market trading, the Commodity Futures Trading Commission said. Also eight people …

Customs Fraud is Becoming a Growing Business for Whistleblower Attorney

A Civil War Era Law Puts Customs Fraud in The Spotlight The False Claims Act is shining a light on customs fraud and reshaping lawsuits around the country. Whistleblower attorneys are expecting to see an uptick in the customs fraud cases they…

In a speech at the SIFMA AML Conference last week, FINRA Head of Enforcement Susan Schroeder openly explained the “straightforward framework” that Enforcement uses when making decisions about enforcement actions. The context for…

On February 7, 2018 the SEC’s Office of Compliance Inspections and Examinations (OCIE) announced its 2018 National Exam Priorities. The priorities, formulated with input from the Chairman, Commissioners, SEC Staff and fellow regulators,…

A recent federal appellate decision shows there are limits to the ability of a regulator to claim monetary sanctions for statutory violations. Last week the 11th Circuit held that investors whose losses were solely associated with…

In line with Chairman Jay Clayton’s oft-stated priority of protecting the long-term interests of Main Street investors, on Feb. 12, 2018, the Securities and Exchange Commission’s Division of Enforcement announced the launch of a…

In a long-awaited constitutional decision regarding the Consumer Financial Protection Bureau (“CFPB”), the full D.C. Circuit Court of Appeals today in PHH v. CFPB reversed a prior ruling by a three-judge panel that the CFPB is…

A January 10 internal memorandum from the director of the fraud section of the DOJ’s civil division commercial litigation branch, which has recently become public, sets out the factors the government should consider in dismissing False…

In late August 2017, a federal judge in Pennsylvania held that violations of the federal Stark Law and Anti-Kickback Statute that defendants characterized as merely “technical” were, in fact, material to the federal…

In late August 2017, a federal judge in Pennsylvania held that violations of the federal Stark Law and Anti-Kickback Statute that defendants characterized as merely “technical” were, in fact, material to the federal…

McEldrew Young Blog

The Bipartisan Budget Act of 2018, passed overnight and signed this morning by President Trump to end the second federal government shutdown of this year, includes two key provisions for whistleblowers previously introduced by Senator Charles…

The CFTC announced enforcement actions against three banks and six individuals for spoofing at the end of January. The three banks, Deutsche Bank, UBS, and HSBC, were charged with spoofing in precious metals futures contracts trading on the…

The largest study of the link between breast implants and lymphoma to date found that there is a greatly increased risk of a rare cancer, according to the report published this month in JAMA Oncology. The study found breast implants are…

Boston, Massachusetts – February 8, 2018 - - The law firm of Baum, Hedlund, Aristei & Goldman has sent a letter and memorandum to the U.S. Attorney’s Office (USAO) for the District of Massachusetts calling for the reopening of…

By George F. Indest III, J.D., M.P.A., LL.M. Board Certified by The Florida Bar in Health Law At several recent Florida Board meetings, after hearings at which disciplinary cases were considered by the Board, Drug Enforcement Administration…

Qui Tam Cases: If You Are Thinking About Blowing the Whistle, Follow These Tip

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law At The Health Law Firm, we have represented many clients that were involved in qui tam cases brought because of false claims under ……

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law On December 6, 2017, three nurse practitioners and a doctor were arrested following an Alabama federal grand jury indictment accusing them of…

Government Contracts Legal Blog

What is a “holdback” and how can it help
We’ve all bought something that didn’t live up to our expectations. When it’s something small, we may grumble about it for a moment or two, and move on with our…

The End of “Net Neutrality”: What to Expect as a Consumer and Business Owner
Nearly every teenager spends a fair amount of time glued to YouTube, and my two sons are no different. As the debate over net neutrality…

Veteran Divorce Law:
In the recent US Supreme Court case of Howell v. Howell, 137 S.Ct. 1400 (2017), it was held that a state court may not order a veteran to pay more spousal support for the loss in the divorced spouse's…

Northern District of Ohio Judge Dan Polster, boldly asserting that he would attempt to resolve the opioid crisis because federal, state and local governments had failed to do so — presided over a wide-ranging status conference on…

On October 19, 2017, the United States District Court for the Northern District of Illinois, in the case of MedPro Health Providers, LLC v. Hargan, dismissed a home care agency’s suit — without deciding the merits of the…

Does a 2016 Law Strip DOJ and DEA of Police Powers to Enforce Drug Laws?

Last week, President Trump declared the opioid crisis a public health emergency. The President’s opioid Commission has now issued its final report with recommendations on how to combat the country’s drug crisis. While both…

Reflection without discipline can be self-indulgent, especially as the year draws to a close and a new one opens before us. So, let us impose discipline; avoid white-collar crime (there will be plenty in 2018); and focus on music, booze and…

A few notes, as Christmas is upon us. First, what to drink? I don’t care for Bloody Marys; they’re too acid. The best Christmas drinks for morning or lunch are milk punch and the French 75. Here is a Garden & Gun article…

Trump Administration Seeks to Strip the Elderly of Their Right to Sue Nursing Home

The rights of the elderly, particularly those who have suffered abuse, neglect, or assault in a nursing home, may be seriously impacted in the near future. Last year, as President Obama’s final term was winding down, his administration…

In the wake of the many allegations of sexual harassment and abuse against Hollywood producer Harvey Weinstein, victims of such misconduct are coming forward in unprecedented numbers. With the “#MeToo” movement trending on social…

Since Labor Day, the city has experienced an uptick in bicycle-related accidents. In mid-September, a female cyclist was fatally struck by a box truck in Tribeca. Several days prior, a Citibike rider was run over in Midtown and suffered…

Through a $465 million settlement, Finch McCranie’s Michael A. Sullivan and James J. Breen of the Breen Law Firm successfully represented a whistleblower whose qui tam case under the False Claims Act helped return hundreds of millions…

$145 Million Settlement: Largest in History by Department of Justice and Finch McCranie, LLP in Any Skilled Nursing Facility Healthcare Fraud Case

Finch McCranie, LLP worked side-by-side with the Department of Justice to bring about the largest healthcare fraud settlement in history with a skilled nursing facility chain. The $145 million settlement ends eight years of litigation under…

$145 Million Settlement: Largest in History by Department of Justice and Finch McCranie, LLP in Any Skilled Nursing Facility Healthcare Fraud Case

Finch McCranie, LLP worked side-by-side with the Department of Justice to bring about the largest healthcare fraud settlement in history with a skilled nursing facility chain. The $145 million settlement ends eight years of litigation under…

This week, New Jersey-based PHH Corp. announced it settled with the U.S. Department of Justice (“DOJ”) to resolve the allegations brought forth by a whistleblower concerning fraudulent mortgage origination and…

LAZ Parking (“LAZ”), hired by the Massachusetts Bay Transportation Authority (“MBTA”) to operate and manage parking lots in Greater Boston, will pay $5.6 million to settle allegations that it failed to detect and deter…

It is difficult to imagine looking for a woman’s dress and NOT shopping at JC Penney’s, Belk’s, Sears, Nordstrom’s, Lord and Taylor or online at “overstock.com”. Yet, to avoid purchasing clothes that were…

It is difficult to imagine looking for a woman’s dress and NOT shopping at JC Penney’s, Belk’s, Sears, Nordstrom’s, Lord and Taylor or online at “overstock.com”. Yet, to avoid purchasing clothes that were…

It is difficult to imagine looking for a woman’s dress and NOT shopping at JC Penney’s, Belk’s, Sears, Nordstrom’s, Lord and Taylor or online at “overstock.com”. Yet, to avoid purchasing clothes that were…

The Securities and Exchange Commission (SEC) has filed a brief in support of Vanguard whistleblower David Danon, who claims he was wrongfully fired after opposing the financial firm’s tax practices. The SEC filed its “friend of…

After a lengthy government investigation, drug manufacturer Pfizer agreed to pay $784 million last month to settle claims that its Wyeth unit overcharged Medicaid for the heartburn drug Protonix. The settlement agreement resolved claims filed…

For years a battle cry for United States-based companies went something like this: Bribery is wrong. But if you enforce anti-bribery laws against U.S. companies then those companies simply cannot effectively compete with foreign…

This fall, the SEC submitted for public comment its first draft of rules for the interpretation and enforcement of the whistleblower provisions of the Dodd-Frank Financial Reform Act. The SEC took great pains to clarify the full scope…

Office Depot Agrees to Pay $43 Million to Resolve Allegations Under the California False Claims Act

Office Depot will reportedly pay $43 million to resolve allegations that the company violated the California False Claims Act by “systematically” violating the terms of its contracts with various California governmental…

Pharmaceutical companies have been a part of some of the largest settlements in the history of the FCA. Below is a list of the ten largest FCA settlements by members of the pharmaceutucal industry: 1. GlaxoSmithKline – $2 billion…

The Department of Justice announced that Community Health Systems (CHS) agreed to pay $98.15 million to settle allegations that the company violated the False Claims Act by billing Medicare, Medicaid, and TRICARE for medically unnecessary…

Investigations Question the Medical Necessity of Some Cardiac Procedures Performed at HCA Hospital

Recently, the New York Times reported that HCA, the largest for-profit hospital chain in the United States with 163 facilities, knew as far back as 2002 and as recently as late 2010 that some of its cardiologists at multiple hospitals in…

Recently, DaVita, Inc., a healthcare company that provides dialysis services to patients with chronic kidney failure and end stage renal disease, agreed to pay $55 million to resolve a decade long lawsuit filed by a whistleblower under the…

Depending on where suit is filed may determine whether the complaint is subject to dismissal for failure to comply with Fed. R. Civ. P. 9(b). Circuit courts are divided in their interpretation of the specificity requirement of Rule 9(b). See…

People may witness Medicare or Medicaid fraud but choose to look the other way. That may be entirely understandable, but is that the most we should expect from our fellow citizens? If health care fraud becomes ever more rampant, should any…